The Coming Bull Market in Gold Stocks Is Going to Be BIG

Surely, they have put up a monument to their hometown boy, Ben Shalom Bernanke. Or maybe it is in nearby Augusta, Georgia, where he was born?

Bernanke is now an employee of policy think tank the Brookings Institute. Or a Distinguished Fellow in Residence in Economic Studies, to be precise.

He’ll no doubt have more time on his hands after his hectic days as ‘Rescuer-in-Chief’ at the Fed. We should wander over to Dillon; perhaps we’ll run into him at a local strip club. We have a few questions we’d like to put to him.

But wait. Does he have bodyguards?

He probably doesn’t need them. No sparrow can fall anywhere in the world without setting off alarums at the NSA. Any plan to harm the former Fed chief would surely be foiled by the ever alert spooks.

Most empires were financed on the loot captured from their conquered opponents. But the US Empire depends not on generals, but on bankers. Bernanke – the ‘Hero of 08’ – kept the credit flowing at a crucial moment…

He kept the empire on schedule… and on target… for its rendezvous with disaster.
Yesterday, the Dow registered a 74 point gain. Gold was up, too.

No one asked us. But we gave our reply anyway. ‘Are we in a new bull market in gold’ was the question. Our answer: We don’t know.

But our reply suggested it didn’t make any difference. Gold has survived hundreds of paper currencies and hundreds of empires. Although the dollar may have gained ground last year, gold will survive it, too.

But here at the DR we are not speculators. We are observers. And what we observe is that gold is real money…ultimate money…the kind of money people turn to when the other kinds seem unreliable.

It is also what great empires tend to accumulate. Like trophy wives, gold goes to winners.

• In the 16th century, Spain collected the world’s gold.
• In the 17th century, the Netherlands was where the gold coins rolled.
• In the 18th century, France was the world’s richest nation.
• In the 19th century, Britain brought home the world’s gold.
• And in the 20th century, the US was number one – with the largest gold hoard on the planet.

So, who are the biggest buyers of gold today? The Chinese. They are preparing to take their place on the world’s largest stage.

Recently, we were asked to update our book Empire of Debt, written with Addison Wiggin. Most observers, we pointed out, have concentrated their attention on the growing pile of US public debt, scheduled to reach 200% of GDP by 2020.

We preferred to focus on the empire itself. Debt has its lifecycle. So do empires. Both expand. Then both…without exception…contract.

An empire funded by debt is an especially ungainly, grotesque thing. It lurches from one disaster to another – going deeper and deeper into debt each time.

The Vietnam War pushed President Nixon – in what became known as the ‘Nixon Shock’ – to end the dollar’s convertibility to gold. Recent wars in Iraq and Afghanistan have further weakened the empire’s finances…with costs approaching $5 trillion.

But it is not the debt that kills empires. Debt is just a razor conveniently left on the side of the tub.

In the meantime, Mr. Market can do whatever he pleases. And it may please him to push the price of gold stocks considerably higher.

Not sure whether a self-managed super find is right for you? Let award-winning wealth manager, Vern Gowdie, show you everything you need to know before making a decision.

Download this free report now and discover:

Why you could lop 31.5% off your annual tax bill by contributing more to your super…and why paying less tax could help your retirement savings compound more quickly…and help you retire sooner.

The definitive list of pros and cons for going self-managed: most investors don’t understand the hefty fees associated with running a SMSF — until it’s too late…if you don’t want the ATO to freeze your SMSF — read this…

Seven checks to see if it’s worth you setting up a SMSF: including the amount of money you have to invest…your investment history…what kind of insurance cover you need…whether you’re good at keeping records…pay attention: this is the small print stuff you need to know…

To download your free report ‘How to Know if a SMSF is Right for You…’ simply subscribe to Markets and Money for FREE today. Enter your email in the box below and click ‘Send My Free Report’.

We will collect and handle your personal information in accordance with our Privacy Policy.

Bill Bonner

Since founding Agora Inc. in 1979, Bill Bonner has found success and garnered camaraderie in numerous communities and industries. A man of many talents, his entrepreneurial savvy, unique writings, philanthropic undertakings, and preservationist activities have all been recognized and awarded by some of America's most respected authorities.

running the gauntlet at the Banksters’ Ball ~by slewie the pi-rat she was pretty, young, and tight i couldn’t afford her for the whole night dressed like a socialite in power red most colorful, drunken, and quite well-fed for the Banksters’ Ball at the SF FED she was a gamer and as in the past someone had dosed her silly, young ass she was a-flyin’ and ready to haul toying with slewie at the Banksters’ Ball she just wanted more punch, was all i steadied my pins for the reeling deck the punchbowl was situ’d way over heck i pitched,… Read more »

Vote Up0Vote Down Reply

3 years 6 months ago

Letters will be edited for clarity, punctuation, spelling and length.
Abusive or off-topic comments will not be posted. We will not post all comments.
If you would prefer to email the editor, you can do so by sending an email to letters@marketsandmoney.com.au

How You Could Make a Small Fortune from These 10 ‘Hated’ Aussie Miners in 2017

If you think the days of making BIG money in mining stocks are gone…you’re dead wrong.

Our resident resources expert, Jason Stevenson, says there’s never been a better time than right now to spread a portion of your capital among some of the best quality miners on the Aussie market.

Download this free report now and discover the top 10 Aussie mining stocks that could make you a small fortune starting this year.

We will collect and handle your personal information in accordance with our Privacy Policy. You can cancel your subscription at any time

Testimonial

Just thought I would let you know that whilst I receive countless financial emails daily I view yours as something special. I am not looking for the same old humdrum I am looking for news that is out of left field. Now you guys would be off the planet if you went any further left but it is refreshingly different. I get through the humdrum first and get my mind sorted and save you for last as a check. It is certainly an insane moment in time but I am still finding investment opportunities. Thanks for your comments